Tuesday 21 February 2012 22.40 EST
First published on Tuesday 21 February 2012 22.40 EST

Kim Dotcom, the founder of the filesharing website Megaupload, has been granted bail and released after a New Zealand judge ruled that the authorities have seized any funds he might have used to flee the country.

US authorities allege Dotcom facilitated millions of illegal downloads through his company. He had been in custody since his arrest on 20 January and the site has been shut down.

Dotcom spoke to reporters outside the court as he was ushered to a waiting truck. "I am relieved to go home to see my family, my three little kids and my pregnant wife," he said. "And I hope you understand that that is all I want to say right now."

He confirmed he would be fighting US extradition efforts. Asked how he had been treated by the police after his arrest, Dotcom said: "Well, it felt a little bit like an audition to American Idol."

He was released without any monetary bail bond, which is standard for cases that come before New Zealand's district courts. He does have other conditions of release but the ministry of justice declined to reveal them, saying this would require an application to the judge.

US authorities claim Megaupload cost film-makers and songwriters $0.5bn in lost copyright revenue. They are trying to extradite Dotcom, 38, and three of his colleagues on racketeering charges.

New Zealand authorities have seized millions of dollars in investments and assets owned by Dotcom, including luxury cars and artworks.

North Shore district court judge Nevin Dawson found that the German-born Dotcom no longer posed a significant flight risk because, as far as the court was aware, he was not hiding any money or assets that could help him flee the country. New Zealand courts had earlier turned down a bail application and a subsequent appeal, saying he did pose a flight risk, but Dawson said those decisions were made when details about Dotcom's assets remained unclear.

"Since that time all known assets have been seized and are unavailable for Mr Dotcom's use or disposal," the judge said. "No new assets or accounts of any significance have been revealed since his arrest. Mr Dotcom's submission that he has not concealed any assets or bank accounts has largely been borne out."

Dawson said he received an affidavit from Bonnie Lam, the Hong Kong chief financial officer of Megaupload, supporting Dotcom's contention that he had no resources available to him.

Dotcom was born Kim Schmitz but legally changed his name. He has both German and Finnish citizenship and was granted New Zealand residency in 2010.

He has lived in Hong Kong, where the Megaupload company is registered.

Colleagues of Dotcom arrested in New Zealand had already been granted bail.